We often face the necessity of asking a loved one for a payday loan. Others can also ask us to borrow money. In such cases, we should know that a payday loan agreement in certain cases may mean the need to pay a special tax on civil law transactions. When do we have to pay it and when we are released from it?

The Act of 9 September 2000 on tax on civil law transactions (Journal of Laws of 2000 item 86 No. 959) indicates that payday loans are taxed. The tax rate is 2 percent of the base according to the law, i.e. the amount of money borrowed. The tax, however, is not always necessary in payment. How does it look like in the case of payday loans from the family, and how from non-relatives?

A payday loan from the family

We can count on a tax exemption primarily when the payday loan is granted in the family. In the light of the regulations, people who belong to the first tax group are exempt from tax, namely: spouses, descendants (children, grandchildren and so on), parents (grandparents, etc.), stepchild, son-in-law, daughter-in-law, siblings, stepfather, stepmother and parents-in-law.

Taxes in the amount of PLN 9,637 are exempt from tax – this is the limit for one person and applies to a period of 5 years.

It is also worth mentioning that there is a possibility of tax exemption even above this amount. In this case, the payday loan must be granted between the closest family, the so-called tax group 0, which includes the spouses, descendants, ascendants, stepchildren, siblings, stepfather and stepmother.

A payday loan from unrelated persons

In this case, the payday loans are already taxed, i.e. the mentioned 2% tax rate. However, there are exceptions to this rule. We present them below.

Under the provisions of the tax exemption, they are subject to :

• payday loans in the amount of PLN 5,000 per one person or 25,000 from many people received over three years

• payday loans from cash registers, for example, company fund funds, trade unions, employee relief and payday loan funds, company social benefits fund

• payday loans granted by a partner in a capital company

• payday loans granted by entrepreneurs providing payday loans and not having their registered office or management in the territory of the Republic of Poland

• payday loans from special purpose funds created on the basis of the Act

Notification of the tax office about the payday loan

In order to be entitled to unlimited exemption as per the regulations, it is necessary to notify the tax office, and the receipt of the payday loan must be properly documented. It must be transferred to a bank account with a clear marking of the title.

We should notify the tax office within 14 days from the conclusion of the payday loan agreement on the declaration on tax on civil law transactions (PCC-3).

When the taxpayer can not take advantage of the unlimited exemption, and the payday loan is more than the limit, then we have to calculate the tax, report it on the said print and pay within 14 days from the date of the payday loan.

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